AMARILLO, Texas (KVII) — An amendment to an agreement originally reached in 2018 could save nearly $2 million in incentives that Texas Tech University would have received from the Amarillo Economic Development Corporation (AEDC), according to AEDC officials.

The incentives were initially intended to support construction costs and staff salaries associated with Texas Tech’s veterinary school in Amarillo. Interim President Doug Nelson said the university is still owed approximately $5 million over the next three years under the existing agreement.

Nelson explained that AEDC has proposed paying Texas Tech a discounted lump sum upfront rather than distributing the remaining funds over time. He said the move would reduce overall costs and provide financial relief to Amarillo taxpayers.

“What we’ve proposed to Texas Tech is that we take a discount on that future cash flow and pay them a discounted amount now, which will save the taxpayers of Amarillo some money,” Nelson said.

According to Nelson, the money saved through the amendment could be redirected toward other development projects or incentives aimed at attracting new businesses to Amarillo.

While such agreements are not common, Nelson said AEDC leaders are confident in the proposal and believe the financial risk is minimal.

“We think the risk here is exceptionally low,” Nelson said. “They’ve performed as agreed. They’ve graduated their first class of veterinarians, and we’re very, very happy with the performance that Texas Tech has had in our community.”

The proposed amendment must receive approval from the Amarillo City Council before it can be finalized. Nelson said he does not expect significant opposition but acknowledged that approval is not guaranteed.

“I don’t believe there’s any risk that they would say no, but that’s always a possibility,” he said. “This is a good deal for both Texas Tech and for ourselves. We like saving money, saving that taxpayer money, and being able to use it in other projects.”

The Amarillo City Council is scheduled to consider the proposal at its next meeting on January 13.

AEDC and Texas Tech Vet School amend partnership agreement (KVII)